May 15, 2012 7:00pm EDT
the break. >>> welcome back to the kudlow report. so, california's in trouble. govern he jerry brown's taking a page from president obama's soak the pririch tax proposals. >> this is the best that i could do. i've been thinking about this a long time. if one of you guys can think of something better, i'll be glad to -- i'll read your story tomorrow and if it passes the smell test we might even incorporate it. >> i've got one right off the top from the "wall street journal" article today. new jersey governor chris christie and a handful of republican governors around the country have balanced budgets with no tax hikes an large-scale union contributions to entitlements, even cutting tax. so it can be done. but where's california? it is the eighth largest economy in the world and it ain't doing great. so, here now we bring in democrat lieutenant governor gavin newsom of california. he hosts current tv's upcoming gavin newsom show. former reagan economic advisor art laffert, author of "eureka, how to fix california." you're going to raise the top tax rate on the most successful earners a
May 16, 2012 7:00pm EDT
morgan asset management. zane brown, and benn steil, council of foreign relations. rebecca, goi to you because i am noticing this swing, the collapse of gold and the rise of the dollar, and i want to ask a serious question. is deflation becoming a threat? >> i don't think it is yet, but i think what you're talking about, there is a common thread. everyone is getting nervous about everything they own. why is gold falling? if greece is going to exit the euro, wouldn't you want to own gold? right now, what every investor on the street is thinking, i want liquidity, i want cash. if i'm selling euros, buying gold. selling gold, buying dollars. it's ironic, because with all the political problems we have in the u.s. and the fiscal challenges -- >> you would think gold would be going to 2,500 and not 1,500. let me get benn steil in. i am told that a lot of these european central banks are selling gold. okay, they need to raise cash. i have no idea if -- who the central bank of greece is. they've got their own problem. but if the central bank sells gold, they're taking cash out of the economy.